‘Outdated law prevents sale of generic drugs at lower rates’

While Punjab government has directed state doctors to prescribe generic medicines, absence of a legal outline, which differentiates pricing of generic medicines from that of branded drugs, is taxing patients as they have to pay more. Some established drug manufacturers had started selling bio-equivalents of branded drugs in the market, the pricing of which was same as that of branded medicines.Manish Sirhindi | TNN | April 21, 2017, 08:07 IST

PATIALA: While Punjab government has directed state doctors to prescribe generic medicines, absence of a legal outline, which differentiates pricing of generic medicines from that of branded drugs, is taxing patients as they have to pay more. Some established drug manufacturers had started selling bio-equivalents of branded drugs in the market, the pricing of which was same as that of branded medicines. Sources in Punjab health department said that drug companies had been doing so to reap tax benefits and it never got passed on to the patients.

TOI is in possession of amoxicillin and potassium clavulanate tablets available in the market under the generic name Moxipil-CV 650 and brand name Genspan-CV 650, which are potent antibiotics. The former carry a maximum retail price (MRP) of Rs 140 per strip, the latter has an MRP of Rs 150. It is learnt that the actual cost of Moxipil-CV 650, at which it was made available to the retailer was around Rs 35, and that of Genspan-CV 650 was Rs 70. However, both medicines are sold at the MRP mentioned on the strips. Dr D S Bhullar, general secretary, Punjab State Medical and Dental Teachers Association, said even as a large number of physicians prescribed salt names, patients went to chemists where they were handed over generic version at the rate of branded drugs. “As the name of the parent company is the same, patients unsuspectingly pay entire amount mentioned on the drug strips,” he said.

Dr D C Sharma, president, Doctors Federation of India, said selling bio-equivalent at the price of branded medicines was made possible as there was no mention on the drug strip that if it was generic or branded. Punjab state drug controller Pardeep Kumar said that pricing of drugs was fixed by National Pharmaceutical Pricing Authority (NPPA). “If the pharmaceutical companies are selling generic medicines at the same price as that of branded ones, they must have got a certificate from NPPA. We have a number of times taken up the matter with concerned authorities but there is no legislation that separates generic medicines from those branded as far as pricing goes. Nothing much can be done in this regard. The country surely needs a legislation for pricing of generic medicines”. Legal expert Sukhjinder Singh said there was no law in the country which mandated mentioning “generic” on the drug strips. “First of all, the Drug and Cosmetic Act of 1940 needs to be amended to define generic medicines only then the drug manufactures can be asked to differentiate pricing of generic and branded medicine,” he said.

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